Contact
Office Locations
Home Office:
The Dunnican Team
9106 Royal Burgess Dr
Rowlett TX 75089
Rockwall Office:
Coldwell Banker Apex, Realtors®
2555 Ridge Road #144
Rockwall TX 75087
Property taxes in Texas are locally assessed and locally administered. Each county’s Central Appraisal District (CAD) determines the market value of your home and applies any exemptions you qualify for. Your value notice arrives in the spring, and your final property tax bill is issued between October and November, due by January 31 the following year.
Your notice contains two key numbers:
Market Value — What the appraisal district believes your property is worth on Jan 1.
Taxable-Assessed Value — The value after exemptions, which the taxing entities use to calculate your bill.
Your final tax bill is:
Taxable Value × Tax Rate(s) for each taxing entity (school district, city, county, MUD/PID, etc.).
If you have a homestead exemption for both the prior and current year, your taxable value cannot increase more than 10% per year, regardless of market value increases.
This cap is defined in Tax Code Section 23.23(a).
A homestead exemption reduces your home’s taxable value, not the market value. This directly lowers what you pay in taxes each year.
Key benefits include:
A large reduction in taxable value (currently $140,000 for school districts, increased from $100,000).
A 10% cap on annual taxable value increases.
Additional savings if you qualify for age-65, disabled, veteran, or surviving spouse exemptions.
Exemptions are not automatic—they must be applied for and monitored annually.
Under the updated Texas Property Tax Code, appraisal districts are now required to review each homestead exemption at least once every five years. Many appraisal districts outsource this screening to third-party systems and will send homeowners a verification letter if they believe an exemption might be incorrect.
If you do not respond, your homestead exemption can be removed, causing:
A higher tax bill
Potential escrow shortages
Confusion that often requires reapplication and correction
Your annual Notice of Appraised Value is the best place to confirm that your exemption is still applied.
If your CAD contacts you:
Respond immediately — failure to do so may result in removal.
You may be asked to submit a new application if a strong indicator of improper exemption is detected.
In less severe cases, you may only need to verify your residence.
If anything appears incorrect, contact the CAD directly.
Your CAD’s phone number is listed at the bottom of your valuation notice and also in our North Texas Homeowners Guide to Property Taxes.
A homestead exemption reduces the taxable value of your primary residence and provides important protections, including the 10% cap on annual value increases. To qualify, the home must be your principal residence on January 1, and you may claim only one homestead exemption in Texas.
Texas law requires all school districts to offer a standard, mandatory homestead exemption on residence homesteads.
As of the most recent constitutional amendment (November 2025), this exemption amount is:
✔ a minimum of $140,000 off your appraised value for school district taxes.
Because school taxes make up the largest portion of most North Texas property tax bills, this exemption directly reduces the total amount you owe each year.
Beyond the state-mandated exemption, local taxing units — including school districts, counties, cities, and some special districts — may choose to offer additional homestead exemptions.
These optional exemptions come in two forms.
Local Option Percentage Exemption
A local taxing unit may offer an exemption of up to 20% of the property's value. The key provision is that the dollar value of this exemption cannot be less than $5,000, regardless of the property's value or the percentage adopted.
Local Option Age 65 or Older/Disabled Exemption
Taxing units also have the option to offer an additional fixed dollar amount exemption of at least $3,000 for homeowners who are age 65 or older or disabled. This is in addition to the mandatory school district age 65+/disabled exemption of $10,000.
The total homestead exemption shown on your tax bill may include:
The mandatory minimum is $140,000 school district exemption, plus
Any optional exemption adopted by your school district or other taxing entities.
Since not all districts adopt the optional percentage exemption, your total savings depend on where you live.
Checking your Notice of Appraised Value each spring—or looking up your address on your county appraisal district website—is the best way to confirm which exemptions are currently applied to your property.
Homeowners who are age 65 or older or who qualify as disabled under Social Security guidelines are entitled to a significant additional exemption on their residence homestead.
Effective for the 2025 tax year, Texas requires all school districts to provide:
✔ An additional $60,000 exemption from appraised value (previously $10,000)
This exemption applies on top of the standard $140,000 homestead exemption, further lowering your school district taxable value.
Qualifying homeowners also receive one of the most powerful property-tax protections in Texas: a school tax ceiling.
Once you qualify (age 65 or disabled), your school district taxes cannot increase—even if:
Your property value continues to rise
Tax rates increase
Bond measures are passed
Your tax ceiling becomes the maximum amount you will ever pay in school taxes on your homestead, unless you make major improvements (such as adding significant square footage). Normal repairs and maintenance do not affect the ceiling.
A surviving spouse may keep the Age-65 or Disabled tax ceiling if:
The deceased spouse was receiving the exemption, and
The surviving spouse is 55 or older, and
The home remains the surviving spouse’s primary residence.
This allows the surviving spouse to continue benefiting from the lower school taxes.
You may only receive one of these exemptions per taxing unit, but you can still combine one of them with the general homestead exemption.
Disabled veterans receive partial exemptions based on their VA disability rating.
A 100% disabled veteran qualifies for a total exemption on their residence homestead.
Surviving spouses may also qualify under specific conditions.
Surviving spouses of first responders killed in the line of duty are entitled to a total exemption, provided they have not remarried.
If a property was inherited without a traditional deed transfer, additional documentation is required:
Affidavit of ownership
Prior owner’s death certificate
Utility bill
Court documentation, if available
Multiple heirs living in the home may need to sign authorization forms.
A MUD is a political subdivision created to finance and manage essential infrastructure—primarily water, sewer, and drainage—in areas not served by a city when the neighborhood was built. Developers use MUDs to fund construction through tax-supported bonds.
MUDs often have the highest tax impact of all special districts.
MUD Taxes Are Part of Your Property Tax Bill MUD taxes show up on the same tax bill as your city, county, and school taxes—not as a separate statement.
MUD Tax Rates Are Often Highest in Newer Suburbs. Newer communities in Rockwall, Fate, Royse City, McKinney, Frisco, and north Rowlett commonly have total tax rates in the 2.7%–3.3% range, largely due to their MUD.
The Tax Decreases Over Time—BUT Slowly. As the MUD pays off its bonds, the rate typically drops. However:
MUDs Affect Affordability. Two nearly identical homes can differ by hundreds of dollars per month depending on the MUD rate.
Transparency Requirements. Texas requires sellers to notify buyers if a property is in a MUD. Buyers must sign a MUD disclosure before finalizing the contract.
A PID is a financing tool cities use to fund enhancements such as:
Entry monuments
Trails & parks
Streetscape beautification
Enhanced drainage
Neighborhood amenities
Road improvements
These are not taxes—they are contractual assessments tied to the property.
PID Assessments May Be Annual OR Paid Off Upfront. Owners can typically pay the assessment each year, OR pay the remaining balance in full. If you pay it off, it’s gone permanently.
PID Assessments Do Not Decline Over Time. PID assessments:
Do not decrease
Do not expire automatically
Do not have a tax “rate”
Only disappear when paid off
PID Charges Appear Separately From Property Taxes.
Some municipalities include PID assessments on the property tax bill; others invoice them separately.
Either way, they remain a lien on the property until paid in full.
Mandatory Disclosure Rules Are Strict. Sellers must provide a PID Notice before the contract is signed, or the buyer can terminate without penalty. This is one of the most important disclosures in Texas real estate.
A SUD is a political subdivision that provides water service, infrastructure maintenance, and sometimes wastewater services in areas outside a city’s service area. While similar to a MUD in purpose, SUDs differ in how they operate and how they assess homeowners.
How SUDs Work
Service-based fees. SUDs primarily charge monthly water and wastewater service fees, not a separate property tax rate.
Possible debt or assessments. Some SUDs impose connection fees, impact fees, or special assessments related to system improvements.
Regulated service provider. A SUD is governed by an elected board, sets its own utility rates, and operates as a standalone water district.
Appears on utility bills, not tax bills. Unlike MUDs and PIDs, SUD charges show up on your monthly water bill, not on your annual property tax statement.
Some neighborhoods outside city limits are served entirely by SUDs rather than city water departments, which can influence monthly utility costs.
Both MUDs and PIDs increase your total property tax obligation, even when the published city and county tax rates appear similar between neighborhoods. These added taxes and assessments affect homeowners in several important ways:
• Higher Carrying Costs
A home in a high-rate MUD or with an outstanding PID assessment can cost significantly more each month than a similar home outside these districts. Buyers often use total monthly payment—not just price—to determine affordability.
• Reduced Buyer Demand
When two homes are comparable in size, age, and condition, but one has a noticeably higher tax burden because of a MUD or PID, buyers may gravitate toward the lower-cost option. This can narrow your potential buyer pool.
• Impact on Resale Value
Higher long-term tax obligations don’t necessarily reduce a home’s value, but they can influence how quickly a home sells and the price buyers are willing to pay—especially in markets where an adjacent neighborhood offers lower overall taxes.
• Difficulty Comparing “Base Tax Rates”
Two areas may advertise the same city or county rate, but total taxes can differ by thousands of dollars per year once MUD or PID obligations are included. Understanding this difference is key for accurate budgeting and resale planning.
| Feature | MUD | PID | SUD |
|---|---|---|---|
| Purpose | Water/sewer/drainage infrastructure | Amenities, improvements, beautification | Water & utility service |
| How You Pay | Added property tax rate | Annual assessment or payoff | Monthly water/utility bill |
| Declines Over Time? | Yes, as bonds are paid off | No, unless paid off | No (ongoing service fees) |
| Appears On | Property tax bill | Assessment statement or tax bill | Utility bill |
| Buyer Disclosure Required? | Yes (MUD Notice) | Yes (PID Notice) | No formal state-mandated notice |
| Impact on Affordability | High | Moderate | Monthly-only impact |
Appraisal districts must reappraise property at least once every three years, though many update values annually.
Market Value: What the CAD believes your property would sell for on Jan 1.
Taxable Value: Market value minus exemptions and capped increases.
Your tax bill is based on taxable value, not market value.
No. You must file a new application for each new primary residence.
No. Texas allows one homestead per person.
Texas uses mass appraisal, comparing groups of similar homes based on recent sales data. Large market shifts can raise your appraised value quickly, even if you didn’t make improvements.
Call your CAD immediately. Contact information for DFW counties is listed in your DFW Appraisal Districts resource.
Homestead exemptions apply to taxing entities, but not always to MUD/PID assessments.
MUD taxes are typically eligible for homestead exemptions.
PID assessments are not taxes—they are contractual assessments, so exemptions do not apply.
Yes. You may protest:
Market value
Unequal appraisal
Missing or incorrectly removed exemptions
Protests must typically be filed before May 15 or 30 days after receiving the notice.
Your mortgage servicer doesn’t know you lost the exemption until they receive the October tax bill.
This causes:
A shortage
Higher monthly payments
A large catch-up payment
This is why monitoring your exemption status is essential.
9106 Royal Burgess Dr Rowlett TX 75089
9106 Royal Burgess Dr Rowlett TX 75089
